United States v. Congress Construction Co.

222 U.S. 199, 32 S. Ct. 44, 56 L. Ed. 163, 1911 U.S. LEXIS 1774
CourtSupreme Court of the United States
DecidedDecember 4, 1911
Docket63
StatusPublished
Cited by65 cases

This text of 222 U.S. 199 (United States v. Congress Construction Co.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Congress Construction Co., 222 U.S. 199, 32 S. Ct. 44, 56 L. Ed. 163, 1911 U.S. LEXIS 1774 (1911).

Opinion

*200 Me. Justice Van Devanter

delivered the opinion- of the court.

This was an action by the United States against the principal and sureties on a bond, given conformably to the act of August 13,1894, c. 280, 28 Stat. 278, as amended February 24, 1905, c. 778, 33 Stat. 811, for the.performance of &■ contract for the construction of a public building, and containing the required additional condition relating to the payment of claims for labor and materials. As stated in the declaration, the right of action arose out of the fact that, although the building had been satisfactorily completed and full payment therefor had been made to the contractor, the latter had failed to make payment to designated subcontractors who had furnished labor and materials used in the construction of the building. The action was brought in the Circuit Court of the district whereof the defendants were inhabitants, which, as appeared on the lace of the declaration, was not the district in which the contract was to be performed. The subcontractors intervened and asked to have their claims adjudicated and judgment rendered thereon. The principal in the bond did not appear, but the sureties appeared specially and interposed pleas to the jurisdiction upon the ground that under the statute, conformably to which the bond was given, power to entertain the action was vested exclusively in the Circuit Court of the district wherein the contract was to be performed. The pleas were sustained ^nd the action dismissed for want of jurisdiction, whereupon this direct writ of error was sued out and the jurisdictional question duly certified.

Before coming to that question it is necessary to consider a motion to dismiss, wherein the position is taken that the jurisdiction of the Circuit Court was not in issue in the sense of the fifth section of the act of March 3, 1891, c. 517, 26 Stat. 826. The position evidently rests upon a mis *201 conception of the true import of the clause, “In any ease in which the jurisdiction of the court is in issue/’ in that section, as interpreted by repeated decisions of this,court, which, with one accord, hold that the jurisdiction of a Circuit or District Court is in issue' in the sense intended whenever the power of the. court to hear and determine the cause, as defined or, limited by the Constitution or statutes of the United States, is in controversy. The cases of Louisville Trust Co. v. Knott, 191 U. S. 225; United States, v. Larkin, 208 U. S. 333, and Fore River Shipbuilding Co. v. Hagg, 219 U. S. 175, cited in support of the motion, do not conflict, but fully accord, , with this holding. In the first case, as this court was careful to state, the power of the Circuit Court under the Federal law was not in controversy, but only its authority, in the exercise of'that power, to proceed in harmony with recognized rules of law applibable alike to all courts, whether Federal or state, possessing concurrent jurisdiction. In the second case, neither the interpretation nor the operation of any statute defining or. limiting the power of the District Court was in issue, but only the place of seizure of jewels sought to be ■forfeited as fraudulently imported, which was a, subsidiary matter not amounting to a jurisdictional question in the sense of the statute. In the third case, the issue related, as was expressly said, to the applicability of a rule of law which was general in its nature and quite as controlling in other courts as in those of Federal creation; And só it was that in those cases the jurisdiction of the courts below was held, not to have been in issue in the sense intended. On the other hand, in Davidson Bros. Marble Co. v. United States ex rel. Gibson, 213 U. S. 10, a case closely in point here, the application of the same guiding principle operated to sustain our jurisdiction. There, as here, the objection to the jurisdiction of the Circuit C.oUrt was that the action was brought in one district, when, under the Federal statutes, rightly interpreted, it should have been brought *202 in another. The objection was overruled, the case came here upon a direct writ of error, and the ruling was reviewed and reversed; it being said in the opinion (p. 18): “ A party who is sued in the wrong district, and does not waive the objection, may of right appear specially and object to the jurisdiction of the court, and, the decision being against his objection, may of right bring the question directly to this court.”

Here the jurisdiction of the Circuit Court, in the sense of its power to entertain the action, in view of the statutory provisions bearing upon the place for bringing such an action, was directly in issue, and so the case is rightly here upon a direct writ of error. The motion to dismiss is accordingly denied.

Whether or not, under the act of 1894 as amended in 1905, power to-entertain the action was vested exclusively in the Circuit Court of the district wherein the contract was to be performed, is the question which was presented to the court below, and answered in the affirmative; and the correctness of that answer turns upon the nature of the action and the provisions of the statute.

According to the declaration, the contract for the construction of the building had been satisfactorily performed, full payment therefor had been made to the contractor, the conditions of the bond had been breached only by his failure to pay designated subcontractors for labor and materials used in the- construction of the building, and the object sought to be attained was the adjudication and enforcement of those demands, unaccompanied by any pecuniary demand of the United States. Manifestly, therefore, the action, although brought by the United States, was essentially one in behalf of the subcontractors, and the respective interests of the United States and the subcontractors therein were in no wise different from what they would have been had the action been brought in the *203 name of the United States by the subcontractors for the use and benefit of the latter.

The statute, whilst authorizing persons holding unpaid demands for labor or materials to bring such an action in the name of the' United States, expressly requires that it be brought "in the Circuit Court of the United States in ..the district in which said contract was to be performed and executed,.irrespective' of the amount in controversy, and not elsewhere,” and also provides that only one such action shall be brought and that it shall be so instituted and conducted, in point of notice and otherwise, that all demands of that class may-be adjudicated therein and included in a single recovery.

Considering the purpose of the statute, as.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States International Trade Commission v. ASAT, Inc.
355 F. Supp. 2d 67 (District of Columbia, 2004)
O'NEIL v. Picillo
682 F. Supp. 706 (D. Rhode Island, 1988)
United States v. 2050 Brickell Avenue
681 F. Supp. 309 (E.D. North Carolina, 1988)
United States v. Bliss
108 F.R.D. 127 (E.D. Missouri, 1985)
Violet v. Picillo
613 F. Supp. 1563 (D. Rhode Island, 1985)
United States v. Roscoe-Ajax Construction Co.
246 F. Supp. 439 (N.D. California, 1965)
Gypsum Contractors, Inc. v. American Surety Company
181 A.2d 174 (Supreme Court of New Jersey, 1962)
United States ex rel. Dillingham v. McCarty
174 F. Supp. 629 (D. Colorado, 1959)
Davis v. Flemming
23 F.R.D. 139 (W.D. Missouri, 1959)
Metropolitan Life Ins. Co. v. Skov
45 F. Supp. 140 (D. Oregon, 1942)
Interstate Commerce Commission v. A. W. Stickle & Co.
36 F. Supp. 782 (E.D. Oklahoma, 1941)

Cite This Page — Counsel Stack

Bluebook (online)
222 U.S. 199, 32 S. Ct. 44, 56 L. Ed. 163, 1911 U.S. LEXIS 1774, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-congress-construction-co-scotus-1911.